Critical Analysis of International HRM in MNCs & Business Strategy

This assignment provides a comprehensive analysis of International Human Resources Management (IHRM) within multinational corporations (MNCs), with a focus on Unilever. It explores the key differences between domestic and international HRM, emphasizing the impact of cultural diversity and varying legal frameworks. The report investigates the importance of HR practices in aligning with business strategies, including employee security, selective hiring, team management, performance-based compensation, training, and employee retention. Furthermore, it critically evaluates tools for global talent management and succession planning, highlighting the significance of career development programs in achieving both individual and organizational goals. The assignment underscores the role of HRM in fostering innovation, flexibility, and a positive organizational culture to enhance overall performance and competitiveness in the global market.

INTERNATIONAL HUMAN
RESOURCES
MANAGEMENT

Table of Contents
MAIN BODY..................................................................................................................................3
TASK-1............................................................................................................................................3
TASK -2.........................................................................................................................................11
Importance of HR practices to the business strategy.................................................................11
Task 3.........................................................................................................................................15
LO3 Critically explore and evaluate tools for the global talent management and succession
planning.....................................................................................................................................15
Career management model........................................................................................................17
REFERENCES................................................................................................................................1

MAIN BODY.
TASK-1
Slide 1

Slide 2

Slide 3

Slide 4
International HRM deals with cultural diversity on a much broader scale as compared to
domestic HRM. It helps the HRM to share and implement new and innovative ideas to the
company and also improves the flexibility of employees to cope up with change (Lopez-
Cabrales, and Valle-Cabrera, 2020). However, it becomes hard for the HRM to manage
people coming from varied range of background and still maintain the decorum throughout
and across international boundaries.

Slide 5
The laws which exists in respect to these issues and their punishment for the committed offence
changes with the change in national boundary (Stankevičiūtė and Savanevičienė, 2018).
The diversity in the policies in the HRM on the global level provides the HRM with a variety
of options that can be used for enhancing the existing policies within an organization. On
the contrary, it can also increase the level of difficulty in maintaining and adhering to the
policies of different countries.

Slide 6
Adhering to the specific laws which are followed in different countries can be quite stressful for
the Human Resource Management of Unilever. But, it can be found beneficial for the
company if it truly provides the employees with the laws operating within their country
(Memon and et.al 2020). It improves employees satisfaction, by following different tax laws,
the HRM might save taxes and thus help in achieving the organizational objectives.

Slide 7

Slide 8

TASK -2
Importance of HR practices to the business strategy
Unilever company is multinational British company which deals in consumer goods
headquartered in London, England. The company sells variety of products such as food , ice-
creams, vitamins, minerals , tea, coffee etc. Unilever is the largest manufacture of soap in the
world. The products of this company is available in more than 190 countries (Amaral, and Daza
Jaller, 2020). The organisation have more than 400 brands with the turnover of 51 Billion in
2021. The company has divided its products into three divisions: Food and Refreshments , Home
Care, Beauty and Personal care. The company also diversified its business globally and made
corporate acquisitions including Lipton, Brooke Bond etc.
Human resource refers to the division of business which is associated with the recruiting,
training an screening of the job applicants. It helps the companies to deal with the changing
business environment. The professional working in Human Resource Department have the
responsibilities that includes the compensation, benefits , recruiting and consider that the laws
are complied by the management of the company (Hewett, and et.al, 2018). The HR department
of the Unilever company has various responsibilities of hiring and recruiting the candidates best
suitable of the job. The role of human resource department is very essential component of every
business as it has to perform the task associated with maximising the productivity of the
company. They are also responsible for maintaining the favourable working environment and
resolve the issues which arise at the workplace. The Human Resource Department of the
Unilever company have the responsibility of framing the policies, procedures and guidelines for
effective functioning of the company (Pritvorova, and et.al, 2018). Human Resource practices
includes the various strategies operation of HR. They guide and manage the employees of the
company and also coordinate the business activities in order to achieve the objectives of the
company.
The company is incorporated with some objective and in order to reach and meet the
goals of the company , the organization have to make various policies , plans and strategies in
order to successful achieving the company's objective. The management has to consider various
perspectives for framing the strategy for successful meeting the vision of the company. He
business strategy can be defined as the set of decisions that helps the entrepreneurs in achieving

the objectives of the company. Business strategy refers to the plan that the management of the
company implements in order to secure the competitive position in the market, to retain the
customers and carry on its operations successfully for the achievement of the objectives of he
company (Arredondo, and Alfaro Tanco, 2021). The strategies of the company is long term
plan and gives direction for the achievement of the objectives of the company. Unilever
Company business strategy focuses on manufacturing the products which is unique which is
offered by the other companies. It focuses on the features of the product through which
customers are attracted and also compete in the market. Strategic management is the process of
setting the procedures, policies and goals in order to make the company competitive. If the
company wants to expand its business internationally the company has to evaluate and analyse
the demand of the products in the market and make strategies which helps the company to grow
in the market (Kitsios, and Kamariotou, 2019). The relation between the Human Resource is to
bring innovation and flexibility and to compete in the market against the companies offering
similar products. It also helps in making favourable organisational culture which will enhance
the team work in the company which will help in improving the performance of the company.
The management of the company while framing strategies analyse the market trend, environment
in order to exploit the opportunities and identify the threats which can affect the sales of the
company and overcome those threats and weaknesses in order to gain competitive advantage
over other companies in the market.
Human Resource is considered as an important part in formulating the business strategy
of the Unilever. The managers of the company realize the importance of well trained employees
for achieving the objectives of the company. The HR practices of the Unilever involves the
strategic operation of the department. The HR Department have the responsibility to guide and
manage the employees of the company which help in building coordination in the company for
implementation of plan for the achieving the objectives of the company. If the company makes
plans in expanding its operations then these HR practices help in recruiting and selecting
effective candidates for the company (Beijer, and et.al, 2021). The professional working in the
Human Resource department ensures that talent priorities are given more importance while
making business strategy for the Unilever.
 Security to the employees: Every employee wants safety associated with the company in
which they are working and it is the best practice for the security of the employee. The